Staff Report
PREPARED BY: ROBERT SCHULTZ
Town Attorney
Reviewed by: Town Manager, Assistant Town Manager, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 1/15/2019
ITEM NO: 4
DATE: JANUARY 10, 2019
TO: MAYOR AND TOWN COUNCIL
FROM: ROBERT SCHULTZ, TOWN ATTORNEY
SUBJECT: ADOPTION OF RESOLUTIONS REQUIRED BY THE CALIFORNIA
DEPARTMENT OF TAX AND FEE ADMINISTRATION REGARDING THE
IMPLEMENTATION OF A NEW SALES TAX (MEASURE G).
RECOMMENDATION:
1. Adopt a Resolution authorizing the Town Manager to execute agreements with the
California Department of Tax and Fee Administration for implementation of a local
transactions and use tax (Attachment 1).
2. Adopt a Resolution Designating and Authorizing Certain Town Representatives and Sales
Tax Consultant to Examine Sales, Transactions and Use Tax Records Pursuant to Revenue
and Taxation Code 7056 (Attachment 2).
BACKGROUND:
Los Gatos voters approved Measure G at the November 6, 2018 election. The passage of
Measure G added Chapter 2.60 of the Los Gatos Town Code establishing a one-eighth cent
(0.125%) local (i.e., District) transactions and use tax. The tax will remain in effect for 20 years.
DISCUSSION:
Pursuant to Revenue and Taxation Code section 7265, the new tax is scheduled to become
operative on April 1, 2019 and will be administered by the California Department of Tax and Fee
Administration (CDTFA). The CDTFA requires that the Town Council approve a resolution
PAGE 2 OF 2
SUBJECT: ADOPTION OF RESOLUTIONS REQUIRED BY THE CALIFORNIA DEPARTMENT
OF TAX AND FEE ADMINISTRATION REGARDING THE IMPLEMENTATION OF A
NEW SALES TAX (MEASURE G).
JANUARY 10, 2019
S:\COUNCIL REPORTS\2019\01-15-19\Sales Tax Resos\Staff Report.docxS:\COUNCIL REPORTS\2019\01-15-19\Sales Tax Resos\Staff
Report.docx
DISCUSSION (Continued):
authorizing the Town Manager to execute an agreement(s) with the CDTFA for implementation
of local transactions and use tax.
Additionally, to ensure the continued confidentiality to sales, transactions and use tax records
as mandated by the California Revenue and Taxation code section 7056, the Town will restrict
access to collections and receipts to those positions requested in the resolution. Therefore, to
maintain the highest level of security, staff recommends updating and expanding the list of
designated Town positions that are permitted to receive and examine Town's sales and use tax
records from the CDTFA. Also, staff recommends including Avenue Insights/MuniServices as
this firm is contracted by the Town to provide sales, transactions and use tax consulting services
for economic analysis, web based data, auditing and staff training when it pertains to local sales
taxes.
CONCLUSION:
Council should move for the adoption of the attached Resolutions.
Attachments:
1. Draft Resolution authorizing the Town Manager to execute agreements with the
California Department of Tax and Fee Administration for implementation of a local
transactions and use tax
2. Draft Resolution designating certain Town representatives and the Town’s sales tax
consultant to examine sales, transactions and use tax records pursuant to Revenue and
Taxation Code 7056